With changing lifestyles and busy schedules, the demand for convenient snack products is growing at a rapid pace. This has led to the snack industry expanding significantly in recent years with more varieties of snacks being introduced in the market.

Rise of Portable Snacks

One of the biggest growth drivers has been the rise in demand for portable and on-the-go snacks. With people constantly on the move, there is need for snacks that can be easily carried and consumed anywhere without utensils. This has led to the popularity of bite-sized snacks that come in re-sealable or disposable packages like granola bars, fruit bars, nuts, dried fruits and sweet or savory snack mixes. Such snacks provide convenience without compromising on taste or nutrition. Major snack companies have invested heavily in introducing new portable options.

Sweet Snacks Maintain Popularity

Cookies, cakes, candies, chocolates and other sweet snacks continue to be very popular worldwide. These classic snacks bring comfort and are popular for socializing and celebrations. Leading brands often launch new flavors and varieties of these sweet treats seasonally to attract consumers. Product innovation also aims at making treats more wholesome, for instance, through adding fibers, nuts or dried fruits. With growing health awareness, some brands now offer organic, vegan and gluten-free options as well to cater to diverse consumer preferences.

Savory Snacks on the Rise

While sweet Snack Products dominate global snack sales currently, the savory snacks category is growing at a strong pace driven by increasing snacking occasions. Savory snacks like potato chips, extruded snacks, nuts, pork rinds and crispy vegetable snacks are gaining popularity for snacking while watching TV or during social gatherings. Major factors influencing the savory snacks market growth include product innovation, appealing flavors and also brands associating fun experiences with their products through marketing campaigns. Some new trends seen are riffing on regional flavors from around the world and launching flavor mashups.

Healthy and Wellness-Oriented Options

With more awareness around nutrition and wellbeing, healthy snacking options tailored for wellness conscious consumers are in demand. Some notable trends include snacks with whole grains, less sugar or salt, high protein and fiber content and no artificial ingredients. Brands are introducing various baked, roasted and dehydrated snack mixes and crisps made with ingredients like lentils, chickpeas, peas, pumpkin seeds etc. Organic and clean label snacks especially resonate well with millennials. This category is expected to witness strong growth in the coming period.

Rise of Private Label Brands

Another notable change is the increasing penetration of own-label or private label brands across snacking categories. Retailers are aggressively challenging national brands by offering good quality generic options at competitive prices under their private labels. Unlike earlier, today’s private label products match national brands in quality, taste and packaging as well, forcing big brands to innovate constantly to defend their market share. This has led to more choices and value for price-conscious customers.

Innovation Driving Growth

Continuous innovation remains key for industry players to attract and retain customers. Besides new flavors, brands are experimenting with interactive and customizable packaging formats along with ‘better for you’ formulations. The usage of clean, natural ingredients, application of food science and technology to enhance nutrition and appealing formats are paving way for the next generation of exciting snack products. The future certainly looks promising for an industry that caters to consumers’ dynamic tastes, lifestyles and evolving health priorities holistically.

Global Snacking Trends

While the snack industry prospers in most developed and emerging nations alike, we take a look at some notable global snacking trends.

North America:

The US and Canada represent the world’s largest snack food market driven by frequent snacking behavior and appealing flavored variety. Portable healthy snacks, breakfast and protein-rich options are gaining traction. Craft and artisanal brands are also emerging.

Europe:

While cookies and chocolates still lead sales, European consumers are open to new international flavors as well as healthier variations. Snacks both for in-home and on-the-go consumption are selling well in major markets like the UK, Germany and France.

Latin America:

Rising incomes and westernization of diets have boosted snack purchasing. Savory snacks are especially popular in Brazil and Mexico. Regional ethnic snack varieties also attract tourists and new immigrants.

Asia Pacific:

Rapid urbanization, changing workstyles and youth population make Asia-Pacific a high growth territory. India leads biscuit consumption globally while chips and extruded snacks do well in China and Southeast Asia. Health foods gain ground.

Middle East & Africa:

Convenience snacks catering to mobile lifestyles gain ground in affluent Gulf countries. Africa shows potential driven by population growth. Cultural adaptations of global snacks and family-size formats sell well regionally.

Future Outlook

Overall, the global snack food market remains vibrant and still evolving driven by all-day snacking behaviors, innovation, wellness needs and cultural preferences worldwide. Major players continue investing in brand-building, new products and wider distribution networks. While intensive competition may challenge margins, opportunities also lie in further tailored offerings across form factors, flavors and nutritionals according to region-specific tastes. Key success factors for players include agility, engaging marketing and competitive pricing in this dynamic industry.

*Note:
1.  Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it